The U.S. Treasury is ending paper checks — here’s what you need to know

Starting September 30, 2025, the U.S. Treasury will officially stop issuing paper checks for federal payments, including vendor disbursements, tax refunds and benefit payments. This move is part of a broader effort to reduce fraud, increase efficiency and support the ongoing digital transformation of financial services.

Read this ABA announcement for more information.

Paper checks have long been considered slow, costly and vulnerable to fraud. With this federal shift, now is the time for businesses to explore smarter, more secure payment options. At Signature Bank, we’re helping clients make the transition with confidence.

Why the transition away from checks matters

Paper checks introduce delays, require manual processing and are increasingly targeted in fraud schemes. According to AFP’s 2025 survey, 63% of organizations reported check fraud in 2024— making it the most commonly targeted payment method. The U.S. Treasury’s decision to phase them out is a clear signal: digital payments are no longer optional — they’re the new standard.

Signature Bank offers trusted alternatives

Signature Bank partners with small and medium-sized businesses to provide modern, secure payment solutions that help you keep pace with today’s financial environment. From ACH payments to advanced automation tools, we’re here to support your transition from checks with efficiency and expertise.

• ACH transfers are a reliable, low-cost way to pay vendors, process payroll and remit taxes. They offer a secure and timely alternative to paper checks, with better tracking and fewer delays.

• Finrails® AP automates your accounts payable process, reducing human error and saving valuable time. Eliminate paper checks, improve visibility and enhance control over your business payments. Is your business ready for automation?

• Our Signature Bank Visa® Corporate Card Program offers powerful solutions for managing expenses at any scale. Whether you're a small business looking for flexibility or a larger organization needing more robust controls, we’ve got you covered.
  • Business Cards provide everyday convenience with expense tracking tools, spending limits and built-in fraud protection — ideal for businesses handling variable costs or recurring payments.
  • Corporate Cards are tailored for larger companies with multiple employees, offering advanced reporting, centralized billing and customizable user controls to streamline expense management and improve oversight.

Learn more strategies to protect your business from fraud. 

Talk with a payments expert

We understand that switching payment methods can raise questions. That’s why our team of Signature Bank payment specialists is here to help. Whether you're looking to streamline operations, reduce risk or modernize your AP process, we’ll help you identify the best solution for your business.